Corn Outlook: Corn futures sank to a two-week low this week from the forecast of showers in Argentina. Pressure also came from expectations that the index funds will rebalance their long corn position this month, which may involve selling up to 175 MB. Last week, the trend following funds increased their long corn position[…]
Overview: Corn and soybeans started the session higher today, but met profit taking shortly after the opening. Meanwhile, wheat was up from reports of flooding in the Queensland province of Australia. Equities were stronger on optimism that the economy is headed in the right direction. For now, concerns regarding the debt crisis in Europe have[…]
Corn Outlook: Tight stocks and dryness in Argentina are the factors supporting corn. Although there have been concerns of year-end profit taking by the funds, it has been a nonevent. Last week, the trend following funds added 130 MB to their long position increasing it to 1.655 BB. Meanwhile, the index funds tacked on[…]
Overview: China hiked their lending rate by one-quarter point over the weekend in an effort to cool their economy. However, it had minimal impact on the grains as traders are focused on hot temperatures in Argentina. Be advised that there may be profit taking by the funds this week as they close out 2010. Recently,[…]
Corn futures are underpinned from concerns of dry weather in Argentina, whether sufficient acres will be planted in 2011, and the extension of the 45-cent per gallon ethanol blenders credit. While these factors are currently supporting the market, the debit crisis lurking in Europe is spreading. Moody’s rating service mentioned that France’s AAA rating[…]
Overview: Grain futures were firmer today in light of strength in the dollar. The greenback is underpinned by concerns of the debt crisis spreading in Europe. Moody’s rating service has announced that France’s AAA rating may be downgraded. Be advised that the contagion in Europe will continue to get worse, and eventually, is headed in[…]
Corn Outlook: There is little fresh news in corn. The holidays are approaching with many traders taking time off until the beginning of the year. Currently, prices are supported from tight stocks, dry weather in Argentina, and expectations that China will import corn next year. Their interest needs to surface soon as exports are[…]
Overview: Commodities were higher today, as China did not raise lending rates over the weekend as was feared on Friday. This weakened the dollar giving the outside markets a lift as well as the grains. Scattered showers occurred in Argentina over the weekend, while conditions in Australia are expected to be drier during the next[…]
Corn Outlook: Tight stocks and strength in wheat are the factors supporting corn. In addition, extending the Bush tax cuts and unemployment benefits are seen as increasing the deficit and bearish the dollar. Meanwhile, exports are lethargic and running 29 percent below the pace needed to reach USDA’s projection of 1.950 BB. Inspections last[…]
Overview: The dollar snapped a three-day losing streak on comments from Bernanke that the Fed may boost purchases of U.S Treasuries. With unemployment at 9.8 percent, the Fed faces a strong head wind in stimulating the economy forcing them to maintain a low interest rate environment. Corn and soybeans were weaker today because of dollar[…]